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tv   Mad Money  CNBC  November 1, 2012 6:00pm-7:00pm EDT

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a.m., in the meantime, mad at 5. "mad money" with jim cramer starts right now. i'm jim cramer and welcome to my world. you need to get in the game! they're nuts, they're nuts! they know nothing! i always like to say there's a bull market somewhere. "mad money." you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you some money. my job is not just to entertain you, fwou educate -- but to educate you, so call me. china. china. the people's republic is more important than we are. that's my conclusion after today's session where the averages rocked a bit higher. the dow gaining 136 points. the nasdaq growing 1.44%.
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i never want to sell the united states short, ever. hurricane sandy could impact the entire nation as federal money and private insurance starts paying off and construction comes back with a vengeance. auto and home industries are coming back with more confidence than ever. and there is real hope in the air that tomorrow's big employment report might show some nice gains. the jobs report were a tad better than expects. that said, the upward move we saw in many stocks today, particularly in the industrials cannot be traced to anything happening here. no, not at all. these gains were all about one piece of data out of china. and not anything else you heard about why the stocks moved is wrong. we got the boost of stocks from fedex and the freight transporter into a mining and
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equipment manufacturer. because a chinese purchaser's report came in at 50.2, up from 49.8 the previous month. how the heck can it index in some index out of china amount to a hill of beans for any company? aren't these companies after all located here? yes, yes. it's true that the u.s. matters. but let me use this rally today to help you understand the world of expectations. not reality. not reality at all. but expectations. >> house of pleasure. >> and how do expectations matter so much more than what has already happened? we're in the midst of earnings season. the bulk of technology reports are already reported. the first was that the united states was holding its own.
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maybe getting a little better. power behind consumer spend. the fiscal cliff looming but still the positive. second is that europe's a disaster and the most important thing you can do is distance yourself from the continent. ask companies like alcoa and ford. the third, that china had become a big disappointment. yeah, china. and it wupt going to turn around any time soon. certainly not in time to help 2012. this came from a decline in orders. they all articulated as such on a recent conference call. companies that have been optimistic that china was about to turn, that the growth was about to kick in collectively seemed to give up all at once on
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the clos sus. nobody had been more upbeat than caterpillar. but you know what it did? it threw in the terrible towel. openly bemoaning china in 2012. gut wrenching. now fast forward to earlier this morning and let me make this thing up close and personal. new york city mayor decided yesterday you needed three people in your car to cross over the east river to get from mat hat tan to brooklyn. you can beat the edict if you crossed over before 6:00 a.m. i set off to find some place to get internet access, electricity and a little wireless. i first tried the new york city stock exchange. they had electricity but that was it.
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so i started the trek north where i could get back on the grid. i walked a block, then two. and we came upon a park, the site of occupy wall street. i got three bars on the iphone and four bars on the verizon air card and a guy selling hot coffee. maybe they were walking dead post apocalyptic world of scant resources that was lower manhatt manhattan. the surprise came from the chinese purchasing manager's number. a string of disappointing figures from the totally more abundant economy. but we didn't get it. you got your first chinese guide up, not guide down. the best of the year. this was just joyous. no one was looking for this. suddenly i didn't care. here was a number that didn't fit into the near universally pieces. the ceo of choice global came on
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our show last month brandishing data showing that chinese electric output bottomed and is coming up. it is coming roaring back. that's why you saw the gains you did today. the biggest industrial is cummins, the engine maker. they rallied $5.17 today, that's up a dozen points. how about nike? bemoaned performance in china, up $3.95 today. copper company looked like it had been sliding back purchased during the darker days suddenly launched a $1.62. how about eden? that company lowered expectations in part due to china. it is now up $4. someone asked jim cramer on twitter accused me of hyping the stock by saying that i thought
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it would go up. and then there is peabody energy. it was recommended to buy aggressively because of the chart. i have been and remain conservati conservative. china is the growth market for peabody. big coal company. closed $29.28. it's been a remarkable run. the weirdest rally is tech. we have seen so many disappointments in tech, we forget how much of tech goes into china. huge market. so let's just say it was enough to reverse the trend of all of the stocks. they moved higher. it was as if they reported better not worse than expected earnings. china provided the change at the margin to make this rally happen. chi that, not the u.s., which everyone knows is okay, and europe is getting much worse. when you get numbers that break the fall of a huge economy like the one we got from china i i
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read about in the park this morning, it spells growth. that's what we got. in return, so many of the industrial and tech stocks that had looked like ugly ducklings turned into beautiful swans -- white ones at that. i don't expect them to revert to their hideous stature. the first in a long line of positive numbers. let's go to george. >> caller: biomed? it had good earnings today but it took a beating. should i hold it or sell it. >> all right. we have to -- this reminds me. we have to have to have to have the ceo back on it. i did not understand how bad this could be and i just -- it is breathtaking. this was today's western union. they faced some sort of advisory panel review. some sort of investigation. we need the company to come out and tell us their side of the story. rick in florida, please.
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rick? >> caller: hey, jim how are you? a big boo-yah from miami. >> the w. love it. >> caller: my company, there is logic. they reported their earnings yesterday. they are doing good. what do you think? >> this is one where as i mentioned the over day, the time to buy logic is when everybody hates it. this is just typically a situation of a stock that has run too much in anticipation of pretty decent earnings and they got decent earnings and that's not enough. let's go to michael in florida. >> caller: boo boo boo-yah! love love love the show. >> thank you. >> caller: all right. my question. insiders are holding over 55%. they beat the analyst estimate seven to eight quarters since the ipo.
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obviously it's overbought. do you think there will be a pull back? >> i'm up close and personal. my sister called me today and told me to buy. he said why don't you own any shares in generac. i think you're right. it's overbought. there is a new change in this country and the change is that we expect a one in a hundred year storm you will see every year. and then, bye-buybuy! >> china helped today. maybe they are roaring back. maybe we are, too. "mad money" will be right back. >> coming up, supply and demand? the lines at gas stations across the east coast are a painful reminder of our dependence on gasoline. what better time to talk about america's domestic supply of nan gas. crushed by the street after reporting, but is this your
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chance to fill up? cramer's drilling down with the ceo in an earnings exclusive. and later, the market may have traded higher today, but after a slew of disappointing reports, there is plenty of pessimism on wall street. cramer is looking beyond the doom and gloom. >> holiday rush? clean up continues as retailers get ready for the busiest shopping season of the year. cramer is seeing if they could be a gift to your portfolio. don't miss this exclusive with the ceo of shopping center, all coming up on "mad money." >> don't miss a second of "mad money." fol lot @jimcramer. send him an e-mail or give us a call.
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1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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>> with the price of oil inching back up and people all over the northeast unablg to buy gasoline. the only way to get opec off our neck and break our addiction to foreign oil is producing cheap, clean, and plentiful natural gas. oil we import is used to make diesel fuel for trucks. we're well on our way. that's the only realistic way to do it. the rest of the world is for the stuff and we're building up terminals that could be building up in a few years. export terminal. either way we need chart industries. the company that makes the highly engineered equipment
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which is used to turn natural gas into liquefied natural gas. we have been behind the stock for a long time. charter reported kis appointeding results. company posted an eight cent earnings miss. be t revenues that rose 23% year-over-year. and the international side had some difficulty. the short term, we have got to take a closer look. welcome back to "mad money". >> hi, jim. >> how are you sir? >> great. i know you came up to new jersey. we have got long gasoline lines. there is no competitor to gasoline in this country to speak of. if we had a competitor and it was like this, would we have the jam we're in right now?
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>> well, i think we would be a lot better off using natural gas. we wouldn't be importing so much oil. as far as the problems here in northern new jersey, that's more of an issue of power failure. >> but there was a refinery issue. we can't get the stuff here. taken from domestic ships. then it would ease that product. >> it absolutely would. we feel very confident it's coming. as you saw today was our disappointment in earnings expectations. it's taking longer than many of us would like. that's because it's a complex issue of providing the supply of liquid natural gas.
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>> i have a big trust, i would love to convert if i knew there were gas stations all over the country. and the gas station people would love to build more gas stations for nat gas if they knew there were a lot of trucks. natural gas trucks. >> i think we have gotten past that. everybody, both the chickens and the eggs are ready to do their bit. what's challenging is how do you ramp it up so that you don't have trucks waiting that you can't use because there is no fuel available and if you're building a fuel station, you want to make sure the customer is for it as soon as it happens. one of the things i have said is we have to understand how long it takes to actually build out infrastructure like this. when the oil company and the automakers were forced to work together to improve emission standards, the fastest those
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changes could be made is over a 10-year roll in period. we really can't expect significant without a stage e d roll in. we can't fix this in one or two years. steps are being made. >> i hope that what would get rid of the worries was the biomedical division. that seemed to be the secular growth story. you have got european exposure and medical is in jeopardy over there. >> it is. and that's really not a problem. we simply have a consolidation going on in this industry. the home health care providers both here and in europe are under a lot of pressure because health care is becoming a huge part of everybody's gdp. so there is lots of efforts to slow down that growth. one of the ways is to cut back reimbursement and effectively force consolidation of the
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industry. we anticipated that with our acquisition of both air sap and seqal because concentrators are a lower cost form of delivered oxygen. what we didn't anticipate is how much how people would pull back the home health care providers while they wait for the results of competitive bidding. >> i know i personally thought that it would be the beginning of multiple export terminals. that hurts the long term story if they're the only one? >> it does but i don't think we have the natural gas to have more than one export terminal there are several more that are very hopeful that they will get approved. i think that the studies which have been done, the preliminary copies that the doe was doing said that it wouldn't dramatically affect the price of
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gas in the u.s. politically it's a no win prior to the election. >> right. >> so we're not going to have a decision before the election. >> it sounds like to me that these are all just temporarily on hold. because the trend is definitely charts friend. but right now we have got a gra great growth story. we are a key supplier for an industry that will grow dramatically. the future, i will try to avoid the misses. >> fair enough. >> i know that it will go over the trend if that's the case. chairman, president, and ceo of ctls. gas to liquid. stay with cramer. >> coming up, a party? the market has traded higher today, but after a slew of disappointing reports there is plenty of pessimism on wall street.
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crime e cramer is looking beyond the doom and gloom. clean up continues as retailers get ready for the busiest shopping season of the year. cramer is seeing if they can be a gift to your portfolio. don't miss this exclusive all coming up on mad money. i don't spend money on gasoline. i am probably going to the gas station about once a month. last time i was at a gas station was about...i would say... two months ago. i very rarely put gas in my chevy volt. i go to the gas station such a small amount
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sucker trade? being gloomy about retail. looking back to last night's interview with the ceo of pvh, remember, the same time he announced that deal, he put it out to october. a statement that is incredible given the brett business. a whole host of different price points, dominating department stores. we worked endlessly and october was not a strong month in the economy. we know it from the tech companies. but you know what we don't know it from? the consumer. the consumer is remarkable in this country whether it be homes or cars or shirts or sweaters, the consumer spending beyond what anyone seems to think possible. numbers from nike or disappointment from others, you are drawing the long conclusions
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to the other ones. hedge funds are corrosive across the board thinking. all they do is think that it is just from one pin to another. there isn't that kind of pin action. they don't think hmm, he is taking his eye off the ball. instead they short every single department store. they don't say a ha, nike is charging too much in china. they say footwear is awful everywhere. they don't think that ugg is beat. they think that stores that carry uggs have stopped ringing up bill sales. they just bet against every other apparel company out there, which brings me to pvh. you know a stock doesn't go up 20% because you bump numbers by 30 cents.
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the calvin clooin jeans and underware lnssing. so many hedge funds have been sorting it. they figured how can they lose if the analogs for shoe and handbag handbags when they do get the exclusion right, people will flock right back to their stock stocks. . >> the weaker reporting apparel and store chain never seems to stop. the vast majority of active trigger pulling hedge funds can't get their arms around the idea that the consume ser alive and well. these guys seem shocked when ever something good occurs. they just can't accept it. they are constantly fearing and
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bedding on the worst happening. ladies and gentlemen, gloom is not a strategy. it is a feeling. and the feeling has not been actual no matter how many times people try to shoe horn it about the thinking about the stock market. here is the is the bottom line. before you get negative, remember the run in pvh. sometimes the big money is made by optimism, not pessimism. when it comes to american retail spending, andrew in florida? andrew? >> caller: professor cramer, i have a delightful south florida boo-yah at you. >> i'm giving you a sunshine boo-yah right back. >> caller: i'm holding shares of michael kors. you said i like kors because in the end the market always circles back and there is only a handful of them left. we're heading into a holiday
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season. is kors one of the remaining few? >> you bet it is. i was talking to tanger outlet's. they are a good customer and they are doing incredibly well in europe. don't sell kors, buy it. bob in florida. bob. everybody is in a nicer area than i am. boo-yah. >> caller: earnings this morning. este lauder came out with earnings. it sold off quite a bit and then bounced up. at the end it sold off again when the market was rallying. >> it has become a problematic situation. i feel like it is just okay. there is no real edge to este. there are others that i like in a similar position. i'm not going to go there and recommend the stock. david in georgia?
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>> jim, boo-yah. >> boo-yah. >> caller: true religion apparels. earnings on the fifth. they make $300 pair of jeans. >> it's done. we're looking for greener pastures. that trade is over. find the next pbh. find the next fru religion. whether you're a nationista like i am -- you like that? you know that retail is back on track. you just need to find companies like pbh that can execute well. that's the ticket. don't move. lightning round is next. when you take a closer look... ...at the best schools in the world... ...you see they all have something very interesting in common.
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they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this.
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we still have got some tickets left. if you would like to join me and special guests next friday here in the studio, head to mad moneycnbc.com for free tickets. now sit time for the lightning round.
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>> buy, buy, buy. >> i will play this sound and then the lightning round is over. are you ready? time for the lightning round starting with nadine in new jersey. >> lower east side boo-yah. dunkin donuts. >> it will climb because the end of the coffee wars was declared. buy. let's go to lorraine in pennsylvania. >> caller: hi, jim. love your show. >> thank you. >> caller: yahoo! at $15.94. >> hold on to yahoo!. finally has gain. yahoo! has finally got game. she's got horse sense. earnings in california. >> caller: from sunniville, calling about netflix.
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>> not too happy. here is my take. i think netflix is a sell sell sell. i think this is going to be a lot more like color rox where he called the top, not the bottom. clorox ha creeped up. let's go carlos in florida. >> caller: how you doing? >> very good. >> caller: very good. i have got bioreference laboratories. >> i have always liked the companies. very much beginning of the pick and shovel business. i think it should be bought this week. frank in maryland. >> caller: boo-yah, jim. i'm calling about hcbk. >> it's taken over. it's done. already done. let's go aaron in washington. aaron? >> caller: hi, jim. how you doing? >> okay. how about you? >> caller: you're my kind of crazy and i love your show.
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i know you don't like what i bought. i was wondering what you currently have views for. a high depth company and the possibility of a buy out with albertsons. >> i think that the company has tremendous source. it just has too much dead. if you refinance the debt you would do better. but i don't think you will get a take-over bid with a substantial premium. you can hold on to it but i'm not looking for anything big on it. chad in hawaii. >> caller: boo-yah. great speaking with you again today. >> i like it, too. >> caller: my question is about the co. >> yep. i like icaris. allegen did very well. you have a two for one here. i like cooper very much. i think it's a buy. i want to go to tom in maryland. >> caller: big boo-yah from
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ravens town. >> listen, i just dropped the kicker. i picked up a kicker from new england. what's up? >> caller: i just want to ask you about mt bank. >> i like that. doing really good. the best reporting bank stock that i saw. don't forget this outfit is conservative and that's what matters. can i speak to gary in north carolina? >> caller: how you doing? >> real good. >> caller: should i sell bwa? >> no, no, no, no. buy, buy, buy! i like the auto business. i don't want to stack away from it. i say stay on it. let's go mickey in michigan. mickey? >> caller: jimmy, boo-yah to ya from michigan man. >> what's going on. >> caller: way too high. compare with discover. >> i agree with you.
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i thought you were a member of the board of directors when i was up visiting my daughter in boston. i said man, you got a rockets p rocketship. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. coming up, holiday rush. getting ready for the busiest shopping season of the year. don't miss this explosive with the ceo of shopping center. >> i want to give you a black nooikt combat boo-yah. >> high flying united states air force blue-ya. >> thank you for serving. love the military. everybody call from it. we got to have them on this show. boo-yah back at you. >> this veteran's ta, "mad
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money" salutes those who defend our country's freedoms by helping to defend their financial futures. if you or someone in your family is proudly serving or has served in america's armed forces, we invite you to join our live studio audience for "mad money". for tickets go mad money.cnbc.com. scuba diving the great barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.
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>> a real estate investment trust that owns and. operator:s the largest neighborhood and community shopping centers in north america. will pay you a bountiful yield. reported a terrific quarter. funds from operations. that's the equivalent of earnings. revenues were higher than expected, plus kimco gave upside guidance. increased to the previous quarter to 93.5%. i think that's insane. some say listen, it wasn't what we were looking for.
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it wasn't what i was looking for. let's check in with david henrys. find out more about the quarter and where his company is headed. >> some of the analysts are slow to catch up. why don't you catch us up to date. last time you still had real estate property. a lot has happened of the last time you were here. >> we think you are having a full solid year this year. up 4 to 5% per share. it is a good earnings record. and it's consistent. we raised our dividend 10 and a half%. >> more than the average. >> as you know we have one of the lowest pay out ratios. the shopping center is leasing
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spread. effective rent. are all flashing green light right now. the industry itself is recovering nicely. for the first time in a long time we are seeing the small shop occupancy go up. >> you announced the execution. that was something i didn't want to do in your book of business. so that's good that it's gone. we started with a billion two of non-shopping center assets. i tha is now down to about 400 million dollars. less than 3% of total assets are now not shopping centers. they are all between 98 and
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100 -- 99%. i think that it is actually this stage a good thing to get into one. you got a lot more room. >> i would agree with you. there is upside there. >> there is the question of the quality. you are getting out of what you own, what you describe in this as lower quality shopping centers than higher quality. what does a lower quality shopping center look like versus a higher quality? >> we are recycling and trying to upgrade our folio. in general, lower quality means secondary markets, perhaps lower quality tennant base. they are shopping centers above market rents in secondary areas. as we look at our portfolio we have more than 900 shopping centers we go to the ones that we don't think will. operator: growth and try to sell them. new york city metro area, we
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have more than 70 shopping centers in this area. this is a great primary growth area for us. >> you have not been hurt by the hurricane other than awning damage and prif y'all damage? >> that's true. in general, neighborhood shopping centers are holding up. most of the larger tennants have generators. >> i like to use companies such as yours to be able to get a parameter of the country. you say at the opening of your comments that national retailers are pursuing -- are again pur e pursuing aggressive expansion. i deal with one company at a time. sounts like many want to go back into erks pangs mode again. especially value oriented and discount oriented retailers. they are opening 50, 100 stores a year and they start to worry
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about where to get that space because there is virtually no new construction. there is no new supply. population is still growing. >> it was only a few years ago that we had dramatic expansion. >> it cycles. >> you do have some exposure to an industry that i'm worried about. i'm a big backer of whole foods. i think they are doing a remarkable job. trader joes is doing a remarkable job. it hurt all the other. operator:ors. do you monitor your exposure to that group? >> i think it's fair to say that the grocery industry is a fair margin. and everybody under the sun is selling groceries. dollar stores and warehouse clubs. there are winners like whole foods, heb, and publix.
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when we buy shopping centers or look at shopping centers to sell, we look at the grocery anchor. if it's above market rents or if it is struggling, we try to concentrate on more whole foods centers. >> sounds like you're moving up. i like the fact that you have a lot more room at a time when people are running out of room. it's been a great performer. we understand that. maybe people are catching up than the better than expected story. i wasn't aware of it myself. congratulations. you know how much i like deals and growth. mad money is back after the break. >> coming up, how do your stocks stack up in this mystifying market? cramer makes sure your portfolio makes the grade.
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>> as we begin to wrap up this unusual week, we can't help but wrap up home work and diversification to make sure that portfolios are protected. that's why we're playing am i diversified. this is where you call me and tell me your top five holdings. maybe you need to mix it up a little. we have had an influx of callers asking whether their portfolio is up to the diversified test. let's start with tony in new york. tony?
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>> caller: hey, jim. big boo-yah to you from new york city. >> i hope everything is well for you and your family. >> caller: we're lucky enough to have power and watch the 76ers beat the nuggets. >> you have the edge on me. go ahead. >> caller: we have sprint, exxon, walmart, and bis. >> wow. i like this portfolio so much i'm stunned by it. it's good to have oil. sprint is a nice speck stock. the stock could be knocked down after the exchange offer that they're doing with soft bank. don't freak out. walmart down today. people are leaving the low end retailers. walmart is good. united health group are big winners under bamcare. and disney acquisition is
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brilliant. we have health care, oil, retail, that's what i'm doing. that's what i'm looking for. that is perfection. michael? >> caller: boo-yah, cramer, from florida state university. >> fsu, go noles. you and me and a couple of beers. >> caller: visa, itc, enterprise product partners, lookheed martin and aig. >> really interesting. that's a very interesting portfolio. i just want to be sure. i'm trying to come up with an average yield in my head of what we have got there. all right all right all right. okay, so we have got visa which we know is not a financial. that is a paper to plastic play. itc, that's a regular utility.
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it's got not as big a yield as i thought. lock heed martin. be aware, that is a big position. and enterprise product partners which i wish was a position that has done a fantastic job. we have insurance company, we have a check to credit card play. utility and defense company. some might think that aig is too much like visa, that someone would be wrong. go b.t. in colorado. >> caller: a great national art boo-yah toya. >> i'll give you a nuggets lost to sixers boo-yah. >> caller: my portfolio is diversify. gld, ba, ebay, dbn, and abt.
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>> oooh. action alert names there. before i get to the gld, may i tell you why i like it so much. many people think it's the best gold company. that stock is down 10% because they didn't do a good job digging up gold. you own gold and then you're a loser. that's not what i want. let's go work. abbott is a great pharmaceutical. ebay, that's papal. we like that. boeing, aerospace, i'm shocked that stock is there. i'm not crazy about devon. they better not disappoint. we have gold, nat gas, aerospace. let's call it finance and drug. that, again, is perfection. how about our contestants today. they'll all winners. stay with cramer.
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>> i want to give you a black knight boo-yah to ya. >> big navy boo-yah. high flighting united states air force blue-ya. >> i'm sending you back a thank you for serving. we have got have them on this show. boo-yah back at you. >> this veteran's day, "mad money" salutes those who defend our country's freedoms by helping to defend their financial futures. if you or someone in your family is proudly serving or has served, we invite you to join our live studio audience for "mad money." for tickets, go to madmoney.cnbc.com. [ male announcer ] at scottrade,
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you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade.
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itif we want to improveinvestors are saying... our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation.
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let's invest in our teachers so they can inspire our students. let's solve this. >> seconds away, is billionaire businessman mike bloomberg playing politics with hurricane sandy in order to get fema and the feds to pick up his city tab? america's mayor rudy guilliaiul first on cnbc. the state's governor scott walker my exclusive gust. stocks don't fare sandy. a great day and the dow climbed 136 points. the kudlow report is just moments away. >> all

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